XINHUA online
 Breaking News Urgent: Earthquake death toll in Indonesia rises to 3,000    Urgent: Infant shot dead in Thai South     Urgent: Indonesian quake death toll tops 2,700     Urgent: Death toll of Indonesian earthquake rises to 2,091     Death toll rises to 1,424 in Indonesia's earthquake     Urgent: Earthquake kills 1,400 people in Indonesia     
  About China
  CPC & Other Parties
  State Organs
  Local Leadership
  White Papers
  Major Projects
  English Websites
- Conferences & Exhibitions
- Investment
- Bidding
- Enterprises
- Policy update
- Technological & Economic Development Zones
Online marketplace of Manufacturers & Wholesalers
   News Photos Voice People BizChina Feature About us   
China's oil supply faces risks, expert says
www.chinaview.cn 2006-05-27 20:46:15

    BEIJING, May 27 (Xinhua) -- China's oil supply is facing risks, which need to be solved mainly through domestic efforts, an oil expert said.

    Zhu Jianjun, a researcher with China National Petroleum Corporation (CNPC), China's largest oil producer, said at a forum on China's energy strategy recently that it is not oil shortage but the uneven distribution of oil resources that caused instability in the world oil market.

    Soaring oil price is the first risk, Zhu said.

    Rapid growth of the world economy has led to a sharp rise of oil consumption in recent years. Conflicts and financial speculation also help to drive oil price higher. Depreciation of the U.S. dollar is another factor for the oil price hikes, he said.

    According to statistics, China spent 43 billion US dollars importing oil in 2004 and the figure rose to over 50 billion US dollars in 2005.

    Zhu predicted that China's spending on oil imports will keep rising as its imports increase and international oil price remains at a high level.

    Transportation also poses a problem for China's oil supply, Zhu said.

    China now imports 140 to 150 million tons of oil a year, and over 70 percent of the imports have to go through the Malacca Straits in Southeast Asia. As the channel is now near its capacity, other channels have to be found, he said.

    China imported some 110 million tons of crude oil in 2004, but only 9 percent was shipped by Chinese oil tankers.

    According to statistics of Shanghai Shipping Exchange, by October 2005 China had more than 590 oil tankers with a combined capacity of only 12 million deadweight tons.

    To remove the risks, China must rely on increasing domestic oil and natural gas supply as well as develop overseas sources to ensure diversified supply and transportation channels, Zhu said.

    China should establish its own oil strategic reserve system and early warning system, improve energy efficiency and develop alternative energies to reduce oil consumption so as to ensure oil supply security, he said.

Editor: Pliny Han
  Related Story  
Copyright ©2003 Xinhua News Agency. All rights reserved.
Reproduction in whole or in part without permission is prohibited.